New Year markets surge sparked by China move
London
LONDON’S blue chip share index has joined stock markets worldwide in staging a New Year rally thanks to economyboosting moves in China, but the pound sunk lower on ongoing Brexit uncertainty.
Equities surged on the first day of trading after the
People’s Bank of China pumped $115 billion (£87.6 bn) into the country’s financial system to help reignite economic growth.
The FTSE 100 Index closed 61.9 points higher at 7604.3 – a gain of 0.8 per cent – while the Dax in Germany finished 1% ahead and France’s Cac 40 lifted 1.1% higher.
Across the Atlantic, the Dow Jones Industrial Average was nearly 190 points up at the time of close in London, with indices following Asia’s lead overnight after the Hang Seng Index jumped 1.3%.
But sterling was suffering a New Year hangover as investors looked to yet another year of Brexit talks taking centre stage.
The pound dropped 0.9% to $1.31 and was 0.4% down at 1.18 euros, with disappointing UK manufacturing survey data adding to pressure on sterling.
The closely-followed IHS Markit/cips Purchasing Managers’ Index (PMI) signalled the manufacturing sector shrunk at its fastest pace in almost seven-and-a-half years in December.
Among equities, stocks were also being given a fillip by hopes of an end to the longrunning Us-china trade dispute after it was announced that a deal would be officially signed on January 15 following an agreement on phase one, with attention now expected to divert to phase two.
Barclays led top-tier gains in yesterday’s rally, with a 5.6p rise to 185.2p – up 3%.
Elsewhere, Tullow Oil shares fell 7% in the FTSE 250 Index, down 4.3p to 59.7p, after the oil explorer revealed disappointing drilling results for its well off Guyana.
The group said it found oil, but that the reservoir it is drilling is smaller than first thought.
In early trading shares dropped by more than a fifth, before paring losses.
The discovery comes after a tough year for Tullow, which saw its chief executive and exploration chief both quit after poor results from its offshore Guyana sites.
Yorkshire-based Videogame developer Team17 Group was enjoying better fortunes after it announced a deal to snap up rival Yippee Entertainment
for £1.4m, meaning the Worms creator can increase studio capacity and access new talent.
Shares lifted 2% or 8.5p to 383.5p.
The biggest FTSE 100 risers were Tui, up 37.4p to 991.2p: Barclays, ahead 5.6p to 185.2p; Antofagasta, 28.2p higher at 945p; and M&G 6.6p stronger at 243.8p.
The biggest FTSE 100 fallers were British Land, down 10.6p to 628.2p; Ocado, off 19.5p to 1259.5p; Next, 60p lower at 6958p; and NMC Health,
13.5p weaker at 1753.5p.
New York
WALL Street’s major indexes notched record highs to open the new year as fresh economic stimulus from China added to optimism fuelled by easing trade tensions and an improving global outlook.
The benchmark S&P 500 hit its 11th record high in 14 sessions and posted its largest daily percentage gain in three weeks.
The Dow registered its biggest such gain in almost four weeks, and the Nasdaq its greatest in nearly three months.
Shares of Apple Inc, which have been a bellwether of trade sentiment, ended 2.3 per cent higher and surpassed $300.
The Dow Jones Industrial Average rose 330.36 points, or 1.16%, to 28,868.8, the S&P 500 gained 27.07 points, or 0.84%, to 3,257.85 and the Nasdaq Composite added 119.59 points, or 1.33%, to 9,092.19.
Other data from Greater China showing that gross gaming revenue in Macau fell less than expected in December boosted shares of US casino operators. Shares of Wynn Resorts Ltd, Las Vegas Sands Corp and Melco Resorts & Entertainment Ltd rose between 2% and 4%.
Volume on US exchanges was 7.61 billion shares.